DOJ Opinion No. 086, s. 1984

DOJ OPINION NO. 086 , s. 1984 May 22, 1984 Hon. Ruben B. Ancheta Acting Commissioner Bureau of Internal Revenue Quezon City Sir : This has reference to your request for opinion, coursed through the Minister of Finance, regarding the scope and extent of the immunities and guarantees provided for in Presidential Decree No. 1840 granting a tax amnesty on untaxed income and/or wealth earned or acquired during the taxable years 1974 to 1980. More specifically your queries are: 1. "Whether or not government personnel who have unjustly enriched themselves in office but have availed of the said tax amnesty could still be subjected to any administrative investigation, among others, insofar as previously untaxed income and/or wealth is concerned;" and 2. "Whether or not their tax amnesty returned and/or declaration of assets, liabilities and networth may be used as evidence in any court of law or body whether judicial, quasi-judicial or administrative in which they may be defendants or respondents; or whether such declarations could still be examined, inquired or looked into by any person, government official, bureau or office." The opinion is sought because of your observation that Presidential Decree No. 1840 "does not categorically contain the absolute immunities and guarantees precisely assured in Presidential Decree No. 631" granting ultimate tax amnesty or untaxed income and/or wealth earned or acquired in 1973 and prior years. The queries do not state the specific context thereof. However they may be answered in a general manner by confirming your observation that the immunities granted in P.D. No. 631 which have been withdrawn in P.D. No. 1840 may no longer be invoked by those who have availed of tax amnesty under the later decree. P.D. 631, which granted tax amnesty on untaxed income and/or wealth earned or acquired in 1973 and prior years, provided, insofar as pertinent as follows: "Sec. 6. Upon payment of the tax prescribed in Section 1 and in the manner provided in Section 5, both of this Decree, the taxpayer shall relieved from any liability to any internal revenue tax otherwise due and payable on such untaxed income and/or wealth, including any increment thereto and penalty on account of non-payment, as well as from all civil, criminal, or administrative liabilities arising from or incident to the filing of the tax amnesty return under the National Internal Revenue Code, Revised Penal Code, Anti-Graft and Corrupt Practices Act, Revised Administrative Code, Civil Service Laws and Regulations, Immigration and Deportation laws and regulations, and any other law, decree or proclamation. Furthermore, the taxpayer shall not be subject to any investigation, whether, civil, criminal or administrative insofar as such previously untaxed income and/or wealth is concerned and the taxpayer's tax amnesty return shall not be used as evidence against, or to the prejudice of, the declarant in any proceeding before any court of law or body, whether judicial, quasi-judicial or administrative, in which he is a defendant or respondent, and such declaration shall not be examined, inquired or looked into by any person, government official bureau or office . . ." xxx xxx xxx" "Sec. 7. Any person who avails of the amnesty provided in this Decree shall also enjoy the immunities and guarantees provided in the preceding section with respect to the statement of assets, liabilities and net worth he filed under Presidential Decree No. 379, as amended, or to the amended statement he files pursuant to Section 3 of this Decree and such statement of assets, liabilities, net worth shall likewise be given the same treatment and regard as the amnesty return he files under this decree, except in the determination of his future tax liabilities. . . ." "Sec. 8. Except as otherwise provided in this Decree, it shall be unlawful for any person having knowledge of the tax amnesty return and statement of assets, liabilities, and net worth filed pursuant to this Decree to disclose any information relative to such return and any violation hereof shall subject the offender to a fine in the amount of not less than Five Thousand Pesos (P5,000.00) or imprisonment for not less than two (2) years nor more than five (5) years or both. Any person who would inquire, question or attempt to inquire into the tax amnesty return and statement filed by any taxpayer pursuant to this Decree shall be guilty of grave misconduct for which he may summarily be dismissed from the service." LexLib On the other hand, Presidential Decree 1840, which granted a tax amnesty on untaxed income and/or wealth earned or acquired during the taxable years 1974 to 1980 provides, insofar as relevant as follows: "Sec. 1. Coverage. In case of voluntary disclosure of previously untaxed income and/or wealth such as earnings, receipts, gifts bequests or any other acquisition from any source whatsoever, realized here or abroad, by any individual taxpayer, which are taxable under the National Internal Revenue Code, as amended, the assessment and increments or penalties on account of non-payment, as well as all civil, criminal or administrative liabilities arising from or incident thereto under the National Internal Revenue Code, are hereby condoned provided that the individual taxpayer shall pay: a) a tax of twenty per centum (20%) on such previously untaxed income or wealth in the case of resident citizens or resident aliens; or b) a tax of two per centum (20%) on such previously untaxed income converted in U.S. dollars derived from sources abroad, in the case of non-resident citizens. Those who have already availed of the benefits granted under Presidential Decree No. 1740 and its implementing regulations may also take advantage of the benefits provided for under this Decree and shall be allowed to credit any amount previously paid under Presidential Decree No. 1740 against the amnesty tax payable under this Decree." "Sec. 9. Unlawful divulgence of information . (a) No information contained in the statement herein required shall be published except in the form of tabulations and summaries having no specific reference to the individual filing the statement. (b) Except for internal revenue tax purposes, it shall be unlawful for any officer or employee of the Bureau of Internal Revenue or any government entity having knowledge of such declaration of assets, liabilities and net worth to disclose to any person any information relative to such declaration and any violation hereof shall subject such offender to a fine in the amount of not less than Five thousand pesos or imprisonment for not less than two years, or both, and shall be summarily dismissed from the service for cause." It is significant to observe that Presidential Decree No. 631 expressly grants to the taxpayer relief from any liability for any internal revenue tax, including any increment and penalty on account of non-payment, as well as from all civil, criminal or administrative liabilities a rising from or incident to the filing of the tax amnesty returns under the National Internal Revenue code, the Revised Penal Code, Anti-Graft and Corrupt and Practices Act, Revised Administrative Code, Civil Service Laws, Rules and Regulations, Immigration and Deportation Laws and Regulations and any other law, decree or proclamation. In addition, the taxpayer under the said Decree shall not be subject to any investigation, whether civil, criminal or administrative insofar as such previously untaxed income and/or wealth is concerned, and the taxpayer's tax amnesty returned shall not be used as evidence against or to the prejudice of, the declarant in any proceeding before any court of law or body, whether judicial, quasi-judicial or administrative in which he is a defendant or respondent, and such declaration shall not be examined, inquired or looked in by any person, government official, bureau or office (See Sec. 6, P.D. 631). In contrast, it is noted that the above quoted provisions of Presidential Decree No. 1840, particularly Sections 1 and 2 thereof, merely condone with respect to taxpayers availing of the amnesty thereunder, (1) the assessment and increments or penalties on account of non-payment and (2) all civil, criminal or administrative liabilities arising from or incident thereto under the National Internal Revenue Code . It is further noted that the provisions in P.D. 631 expressly prohibiting the use as evidence of the tax amnesty return against, or to the prejudice of, the declarant in any proceeding before any court if law or body, whether judicial, quasi-judicial or administrative, in which the taxpayer is a defendant or respondent, as well as provision prohibiting the examination and inquiry into said declaration by any person, government official, bureau or office were likewise omitted in P.D. 1840 and its precursor, P.D. 1740 (Condoning Penalties for Certain Violation of the Income Tax Law Upon Voluntary Disclosure of Undeclared Income for Income Tax Purpose and Requiring Periodic Submission of Networth Statement). What is retained in Section 8 of P.D. 1841 is only the prohibition against unlawful disclosure to any person of any information relative to the declaration of assets, liabilities and networth. LexLib It is a well established rule in statutory construction that where a statute with reference to one subject contains a given provision, the omission of such provision from a similar statute concerning a related subject is significant to show that a different intention existed (Sands, Sutherland Statutory Construction, Vol. 2A, p. 291). The omission therefore in P.D. No. 1840 of the broad and comprehensive immunity and guarantees provided for in P.D. 631 as well as the prohibition against the use as evidence of the tax amnesty return clearly indicates an intention to adopt a new scheme with regards to the grant of amnesty to tax payers. If the intention of P.D. 1840 was to grant the same absolute immunity embodied in P.D. 631, it could have so easily provided for this by reiterating the same guarantees specified in Section 6 and 8 of P.D. 631. Accordingly, with respect to the first query, it is believed that government officials who have unjustly enriched themselves in office and have availed of the tax amnesty under Presidential Decree No. 1840, are declared free from civil, criminal and administrative liability under the National Internal Revenue Code, but are not broadly speaking rendered immune from administrative and other investigations outside of the provisions of the National Internal Revenue Code, e.g. the Civil Service Law, Rules and Regulation, the Anti-Graft and Corrupt Practices Act or other pertinent law, subject to the requirements of confidentiality as provided in Section 9. LLpr Regarding your other queries suffice it to state that in line with the above discussion and conclusion, only the declaration of assets, liabilities and networth submitted in compliance with the tax amnesty proceeding is covered by the prohibition under P.D. 1841 against the unlawful divulgence of information. Please be guided accordingly. For the Minister of Justice: (SGD.) JESUS N. BORROMEO Deputy Minister